2027 Earned Income Tax Credit: Income Limits, Maximums and Rules

Answer first: The maximum Earned Income Tax Credit for tax year 2027 is $8,496 for a taxpayer with three or more qualifying children. The maximum is $7,552 with two children, $4,573 with one child and $685 with no qualifying children. Income limits depend on filing status and family size, and the credit is unavailable if disqualifying investment income exceeds $12,600.

2027 EITC table: maximum credits and income limits

The IRS published these inflation-adjusted figures in Revenue Procedure 2026-35 on November 5, 2026. They apply to income earned in 2027 and generally to returns filed in 2028. “Completed phaseout” means the point at which no EITC remains; it does not mean every taxpayer below that line receives the maximum.

Where the 2027 credit starts to phase out

For married taxpayers filing jointly, the maximum credit begins to phase out when the greater of adjusted gross income or earned income exceeds $32,170 for filers with at least one qualifying child. For a joint filer without a qualifying child, phaseout begins at $18,730. For other eligible filing statuses, the phaseout starts at $24,660 with at least one qualifying child and $11,210 without one.

The IRS table also lists the earned-income amount at which the credit reaches its maximum: $13,450 with one qualifying child, $18,880 with two or more children and $8,960 without a qualifying child. Actual return software uses the IRS credit table and all applicable rules, so a quick percentage calculation is not a substitute for the final 2027 instructions.

Who can qualify for the Earned Income Tax Credit?

At a high level, an eligible taxpayer needs earned income from work or self-employment, a valid Social Security number by the return due date, qualifying U.S. residency or citizenship status, and a filing status allowed for EITC. The taxpayer generally cannot file Form 2555 for foreign earned income. A person claimed as another taxpayer’s qualifying child cannot claim the credit on their own return.

Married taxpayers ordinarily file jointly to claim EITC. A married person filing separately may qualify only under the special separated-spouse rules, which include living apart from the spouse for the required period and maintaining a qualifying child’s main home. This is a facts-and-circumstances rule worth checking carefully.

2027 qualifying-child tests

A child must satisfy several tests at the same time:

• Relationship: generally a son, daughter, stepchild, eligible foster child, sibling, stepsibling, half-sibling or a descendant of one of them.
• Age: generally under 19 and younger than the taxpayer, or under 24, younger than the taxpayer and a full-time student for at least five months. A permanently and totally disabled child can be any age.
• Residency: generally lived with the taxpayer in the United States for more than half the year, subject to temporary-absence and special rules.
• Joint return: generally did not file a joint return with a spouse, except in limited refund-only circumstances.
• Identification: has a valid Social Security number meeting the EITC timing rules.

Only one taxpayer can use the same child for EITC. When more than one person could claim a child, statutory tiebreaker rules look at parent status, time lived with each parent and adjusted gross income. Do not solve a shared-custody question by assuming the parent who paid more expenses automatically wins.

Can you claim EITC without a child?

Yes, but the maximum credit is much smaller: $685 for 2027. A childless claimant generally must be at least age 25 but under age 65 at year-end, live in the United States for more than half the year, not be another person’s dependent and not be another taxpayer’s qualifying child. A spouse on a joint return must also satisfy relevant age rules.

The completed phaseout is $20,164 for eligible non-joint filers and $27,684 for married couples filing jointly. Because the credit begins phasing out earlier—$11,210 or $18,730 respectively—a taxpayer can be below the final limit and still receive less than $685.

The $12,600 investment-income limit

For 2027, EITC is unavailable when specified investment income exceeds $12,600. The test can include taxable and tax-exempt interest, dividends, net capital gains, rents and royalties, and certain passive-activity amounts under the form instructions. It is a separate eligibility gate, not another phaseout.

Review brokerage statements, savings interest and rental or royalty income before assuming wages alone determine eligibility. Selling appreciated stock late in the year can affect this test even when earned income stays the same. Use the final 2027 worksheet because the statutory definition does not always match a household’s everyday meaning of “investment income.”

Worked examples

Married couple with two qualifying children

Suppose a joint-filing couple has $42,000 of earned income, no disqualifying filing issue and investment income below $12,600. Their income is below the $68,029 completed-phaseout amount but above the $32,170 phaseout threshold. They may receive an EITC, but it will be less than the $7,552 maximum. The IRS credit table or approved software must calculate the final amount.

Single parent with one qualifying child

Suppose an eligible head-of-household filer has $24,000 of earned income. The amount is below the $24,660 phaseout threshold for a non-joint filer with a child, so the taxpayer may be in the maximum-credit range, subject to AGI, investment income and every other qualification rule. The maximum is $4,573, not an automatic refund amount.

Worker without a qualifying child

An eligible single worker with $18,000 of earned income is above the $11,210 phaseout threshold but below the $20,164 completed-phaseout amount. A reduced credit may remain. Age, residency, dependent status and investment income still need to be checked.

EITC filing checklist for 2027

1. Gather every W-2, 1099 and self-employment income record.
2. Confirm names and Social Security numbers match Social Security Administration records.
3. Document each child’s relationship, age and time living in the home.
4. Coordinate with another parent before either return claims the child.
5. Add investment income and compare it with the $12,600 limit.
6. Use the final 2027 Form 1040 instructions, Schedule EIC and EITC table.
7. Consider IRS-certified VITA or TCE help if eligible.
8. Keep school, medical, childcare or housing records that support residency.

For broader planning, compare the 2027 federal tax brackets and the 2027 Child Tax Credit. The income tax calculator can estimate scenarios, but it cannot verify a qualifying child or replace the official EITC table.

Common mistakes to avoid

• Using the completed-phaseout number as if it were the maximum-credit threshold.
• Ignoring adjusted gross income when it is higher than earned income.
• Overlooking interest, dividends or capital gains in the investment-income test.
• Claiming the same child on two returns.
• Assuming Child Tax Credit eligibility automatically proves EITC eligibility.
• Using 2026 limits on a 2027 return.
• Inventing self-employment income to create a credit; false income can cause penalties and a future EITC ban.

Frequently asked questions

Sources and tax disclaimer

Primary sources reviewed November 8, 2026: IRS Revenue Procedure 2026-35, the IRS 2027 inflation-adjustment release, and the IRS qualifying-child rules. This article is general education, not individualized tax or legal advice. Eligibility depends on the complete return and family facts. Use final 2027 forms or a qualified tax professional before filing.